Analysis of Paypal spinoff from Ebay
1. Company/industry: Ebay historical analysis
2. Reasons for a spinoff:
a. in general, with examples
b. in this case
3. Valuation of the company pre-spinoff using multiples and DCF: was there a conglomerate discount?
4. Comparison of operating performance of business units vs. focused peers: were the businesses underperforming relative to peers (one possible reason for a spinoff)?
5. How the spinoff transaction worked
6. What happened since then, how paypal and ebay performed until today since the spinoff.
Crucial to include many graphs (mandatory stock performances graphs), in excess of the 25 pages.